Blog: Leonie BarrieMixed bag in August

Leonie Barrie | 10 September 2007

Delayed back-to-school spending sprees hit US retailers hard in July, so it was a relief to many that preparations for the new academic year gave a boost to August same-store sales growth and overshadowed other worries like the struggling housing market, tightening credit and rising gas prices.

According to TNS Retail Forward’s August ShopperScape survey, August same-store sales growth was 3.0% ahead of the prior month, and shoppers expected to spend an average $571 on their back-to-school purchases. That said, August sales were down 3.9% on the same month last year when the back-to-school estimate was $596. Furthermore, 67% of planned back-to-school spending is now thought to be complete.

So while education offered some respite to apparel chains and department stores last month, it’s likely this was just a blip in a longer-term trend.

“Shoppers were not spooked like stock market investors by fears of a credit crunch. But that only means that the fallout for households will hit home more gradually in the coming months,” said Frank Badillo, senior economist and director of the Retail Forward KnowledgeBase. And there’s more bad news for September, when retailers will be up against some difficult September year-ago comparisons.

US retailers' August 2007 sales roundup


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

just-style homepage



Forgot your password?